Chapter-1: Store Operations
Chapter-1: Store Operations
Chapter-1: Store Operations
INTRODUCTION
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INTRODUCTION
Retailing includes all the activities involved in selling goods and services directly to the
consumer for personal or non personal use. In other words, retailing is the sale of goods and
services to the ultimate consumer for personal, family or household use. Thus, retailing involves
more than selling tangible products. It includes every sale of goods and services to the final
consumers.
At the heart of the Indian growth story is its population, the generators of wealth both as
producers and consumers. With the largest young population in the world, retail formats such as
departmental stores, hypermarkets, supermarkets, specialty stores etc. are flourishing.
As customers taste and preferences are changing the market scenario is also changing
from time to time. It is the changing taste and preferences of the customers which has brought a
change in the market. Income level of the people has changed. Today we can see a new era in
retail market with the opening of many hyper markets, shoppers stop, malls, branded retail
outlets and specialty stores.
This study is based on the survey on customers of small stores named MORE. MORE
came into existence in India since 2007. It is a kind of market where various types of products
are available under one roof. This study is on determining the customers perception towards the
services offered inside the store and the satisfaction level of customers in MORE.
Service is the "sum of acts and elements that allow consumers to receive what they need
or desire from your retail establishment." It is important for a sales associate to greet the
customer and make himself available to help the customer find whatever he needs. When a
customer enters the store, it is important that the sales associate does everything in his power to
make the customer feel welcomed, important, and make sure he leaves the store satisfied. Giving
the customer full, undivided attention and helping him find what he is looking for will contribute
to the customer's satisfaction.
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Objectives
To know the retail operations that takes place in the MORE, VISAKHAPATNAM.
To evaluate the customer service practices.
To know the store maintenance.
To know the availability of the products.
To know the most used department in organization.
To know about the H.R. activities in organization.
To know about the promotional activities in organization.
To know about the customer feedback in organization.
RESEARCH METHODOLOGY
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Technology, customers tastes and preferences play a vital role in todays generation.
Research Methodology is a set of various methods to be followed to find out various information
regarding market strategies of different products. It is required in every industry for acquiring
knowledge of their products.
Area of study:
The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be no
mechanical substitutes.
Research Design:
A research design is purely and simply the frame work or plan for a study that guides in
the collection and analysis of the data. There are two types of research designs, they are :
a. Exploratory research design
b. Descriptive research design
a. Exploratory Research design:
Exploratory research studies are also termed as formulate research studies. The main
purpose of such studies in that of formulating a problem for more precise investigation or of
developing the working hypothesis forms an operational point of view.
b. Descriptive Research design:
Descriptive research is one that concerned with describing the characteristics of a
particular individual, or of a group. It is concerned with determining frequency with which
something occurs or how two variables vary together. Here the problems are defined and the
solutions are defined and the solutions are provided.
Research Sample
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Sampling Plan: Since it is not possible to study whole universe, it becomes necessary to
take sample from the universe to know about its characteristics.
Sample Size
A sample was required for the study because the number of customers at the MORE was
over 5000 in the period of project. It is very difficult to consider the whole universe; therefore, a
representative sample size was selected 100 only. Although it looks to be a small sample,
keeping in view the large number of employees, it was to be limited due to time constraint.
Data Collection
Data is collected from various customers through personal interaction. Specific
questionnaire is prepared for collecting data. Data is collected with mere interaction and formal
discussion with different respondents. Some other relevant information collected through
secondary data .Adequate and relevant data is essential for any meaningful research.
It forms
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methods were adopted since the data which is required is highly focused on
customer satisfaction.
2) Secondary data:
Secondary sources are the other important sources through which the data was collected.
These are the readily available sources of the data where one had need not put much effort to
collected, because it is already been collected and part in an elderly manner by some researcher,
experts and special. The secondary data are collected through various sources like
1. Secondary data are collected through internet related to industry, company &
competitors, etc.
2. Review of articles being published on the topic in various magazines and newspapers.
3. Data are also collected from the company brochures etc.
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Chapter -2
INDUSTRY PROFILE
INDUSTRY PROFILE
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with their customers. Needed, not to mention that they probably had to travel all over town to get
their shopping done.
As manufacturing methods improved, and as the road and rail transport network
extended, there developed specialist manufacturers who needed retail stores to sell their goods.
Over time, the small retail store concept grew, and by the mid 1950's small stores blanketed
every high street.
While most people loved the individual attention and great service that the small store
provided, it became more and more difficult for the small store to offer the kind of prices and
selection that the consumer really.
The next big revolution in retailing was the emergence of the retail chains, and later the
superstores. The consumer of the 70's demanded the convenience of having their favourite stores
in one enclosed location where they could easily hop from store to store without having to
concern them about the weather.
This shopping mall concept was quickly embraced by the consumer, but unfortunately
the crowds and traffic of today's mega malls can often turn what should have been a convenient
and comfortable shopping experience into a mission of hand-to-hand combat!
In recent years, the mail order business has experienced some of the most impressive
growth, which would also seem to echo the continuing consumer demand for convenience. Most
retailers are recognizing that they simply have to offer their customers the ability to order
products or services from the comfort of their own home or office in order to compete in today's
retail marketplace.
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Is expected that by modern retail industry in India will be worth US$ 275- 350 billion.
India retail industry is one of the fastest growing industries with revenue expected in 2007 to
amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the industry of retail in India by growth in consumerism in urban areas, rising
incomes, and a steep rise in rural consumption. Shopping in India has witnessed a revolution
with the change in the consumer buying behaviour and the whole format of shopping also
altering. Industry of retail in India which has become modern can be seen from the fact that there
are multi- stored malls, huge shopping centres, and sprawling complexes which offer food,
shopping, and entertainment all under the same roof.
India retail industry is expanding itself most aggressively; as a result a great demand for
real estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centres.
In the Indian retailing industry, food is the most dominating sector and is growing at a
rate of 9% annually. The branded food industry is trying to enter the India retail industry and
convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket
consists of non-branded items.
India retail industry is progressing well and for this to continue retailers as well as the
Indian government will have to make a combined effort.
Global retail giants are also entering the retail industry in India and this is also one of
the factors in the growth of the organized retail sector in India.
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The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by
the year 2010. There are under construction at present around 325 departmental stores, 300 new
malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the
Indian retail market.
This led to increase in foreign direct investments Global retail giants are also entering
the retail industry in India and this is also one of the factors in the growth of the organized retail
sector in India. The global retail giants who are entering the organized retail sector in India are:
Wal-Mart, Tosco, Carrefour SA, Metro AG.
Present Indian Scenario:
* Unorganized market: Rs. 583,000 cores
* Organized market: Rs.5, 000 cores
* 5X growth in organized retailing between 2000-2005
* Over 4,000 new modern Outlets in the last 3 years
* Over 5,000,000 sq. ft. of mall space under development
* The top 3 modern retailers control over 750,000 sq. ft. of retail space
* Over 400,000 shoppers walk through their doors every week
* Growth in organized retailing on par with expectations and projections of the last 5 Years: on
course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2013-14.
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INTRODUCTION
The Indian retail industry has presently emerged as one of the most dynamic and fast
paced industries as several players have started to enter the market. It accounts for over 10 per
cent of the countrys gross domestic product (GDP) and around eight per cent of the employment
in India. The country is today the fifth largest global destination in the world for retail.
Several corporate have planned to exploit the opportunities in the Indian retail space,
such as Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs 1.8 trillion
(US$ 29.41 billion) for the next three years for its petrochemicals, telecom and retail ventures.
With the growth in the retail industry, the corresponding demand for real estate is also
being created. Further, with the online medium of retail gaining more and more acceptance, there
is a tremendous growth opportunity for retail companies, both domestic and international.
Market size
In 2013, the Indian retail sector was estimated at US$ 520 billion and was among the
largest employers in the country. By 2018, the Indian retail sector is likely to grow at a
compound annual growth rate (CAGR) of 13 per cent to reach US$ 950 billion. Food and
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grocery is the largest category within the retail sector with 60 per cent share followed by the
apparel and mobile segment.
Organized retail, which constituted seven per cent of total retail in 2011-12 is estimated
to grow at a CAGR of 24 per cent and attain 10.2 per cent share of total retail by 2016-17,
according to a study titled 'FDI in Retail: Advantage Farmers' conducted by an industrial body.
India has about one million online retailers - small and large - which sell their products
through various e-commerce portals. Presently, these online retailers have started to use the
medium of online mobile apps to increase their reach to the customers. Several e-commerce
firms - Myntra, Flipkart, Jabong, etc., have launched their own mobile apps. Flipkart plans to use
their US$ 1 billion funds raised to acquire companies in mobile applications.
According to the TCS Gen-Y 2013-14 survey, a total of 68 per cent of teenagers shop
online, while 91 per cent own mobiles in smaller metros. Mobile phones and tablets were the
most popular gadgets among teenagers, highlighted the survey.
Investments
The foreign direct investment (FDI) inflows in single-brand retail trading during the
period April 2000 - July 2014 stood at Rs 842.53 crore (US$ 137.70 million), as per data released
by the Department of Industrial Policy and Promotion (DIPP).
Some of the other notable investments and developments in the Indian retail sector in
the recent past are as follows:
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Liberty Shoes has planned to improve its retail presence as it plans to double the revenue
to Rs 1,000 crore (US$ 165.38 million) within three years.
Walmart Stores invested Rs 623 crore (US$ 101.82 million) into its Indian cash-and-carry
operations in June 2014 to expand its network, thereby taking its total investment in the
country to nearly Rs 2,000 crore (US$ 326.91 million).
Online marketplace Infibeam looks to build an online presence for large retail clients in
West Asia with its technology platform Buildabazaar. The company has partnered
with Axiom Telecom and will handle its e-commerce business.
Argentina-based luxury brand La Martina - a polo lifestyle company known for its
apparel, technical equipment and accessories - has started operations with its maiden
store in New Delhi. La Martina has also diversified the brand to add general fashion
products for ladies, men and kids.
Japan-based Uniqlo plans to open up to 1,000 stores in India in the coming years to tap
into the growing consumption story and has announced a strategy to source garments
from the country. Uniqlo, which started as a chain of suburban roadside stores in Japan, is
targeting close to 1,500 stores across the globe by the end of August.
The combined entity of Flipkart and Myntra plans to launch a fashion incubator, a firstof-its-kind move by an Indian startup, in its aggressive push to gain complete dominance
of the fast-growing online apparel category.
UK-based Tesco in equal partnership with the Tata Group's Trent plans to open six to
eight new stores in Maharashtra and Karnataka under three of its formats this financial
year. The stores will take the total number of Tesco-Trent outlets in the country to 20.
Government Initiatives
The Government of India has taken several initiatives to boost the Indian retail sector. For
instance, the Ministry of Labour, Government of India has recently signed a Memorandum of
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Understanding (MOU) with Flipkart to provide short-term training to its new employees through
its skill development initiative.
The changes in foreign direct investment (FDI) norms along with the relaxation of certain
regulations by the government are also seen as positive moves to attract more foreign
investments and enhance foreign trade. The government has allowed 100 per cent FDI in SingleBrand Retail Trading (SBRT) and 51 per cent FDI in Multi-Brand Retail Trading (MBRT).
In the Union Budget 2014-15, the Government of India announced a reduction in the
excise duty from 12 per cent to six per cent on footwear with retail price exceeding Rs 500 (US$
8.17) per pair but not exceeding Rs 1,000 (US$ 16.34) per pair.
The Government of India has also proposed the Goods and Services Tax (GST). Once
implemented it will simplify the supply chain and bring down prices. This will help to boost the
Indian retail sector.
It has also formulated specific regulations for foreign investors; for instance, global
chains planning to set up cold storages and warehouses in India will now need to invest only 50
per cent of the initial compulsory investment of US$ 100 million.
Road Ahead
Driven by a combination of demand, supply and regulatory factors, the Indian retail
sector is set to grow rapidly with a gradual shift toward organised retailing formats. Organized
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retail penetration is expected to increase from 7.5 per cent in 2013 to 10 per cent in 2018 at a
robust CAGR of 19-20 per cent during that period.
Tier-II and Tier-III cities such as Jaipur, Nagpur, Ludhiana, Vadodara, Aurangabad,
Kochi, etc., are emerging as the new hot spots of consumption.
Organized retailers are increasingly setting up stores in these smaller cities with
increasing focus on profitable growth in the sector. E-commerce is also expected to be the next
major area for retail growth in India. Along with this, achieving profitable growth and inventory
management are also some major areas of focus in the times ahead for the retail companies in
India.
Store retailers
Non store retailers
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STORE RETAILERS
Operate fixed point-of-sale locations, located and designed to attract a high volume
of walk-in customers. In general, retail stores have extensive displays of merchandise and use
mass-media advertising to attract customers. They typically sell merchandise to the general
public for personal or household consumption, but some also serve business and institutional
clients. These include establishments such as office supply stores, computer and software
stores, building materials dealers, plumbing supply stores and electrical supply stores.
Catalogue showrooms, gasoline service stations, automotive dealers and mobile home
dealers are treated as store retailers.
In addition to retailing merchandise, some types of store retailers are also engaged in
the provision of after-sales services, such as repair and installation. For example, new
automobile dealers, electronics and appliance stores, musical instrument and supplies stores
often provide repair services. As a general rule, establishments engaged in retailing
merchandise and providing after-sales services are classified in this sector.
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both manufacture and sell their products to the general public are not classified in retail, but
rather in manufacturing.
RETAIL FORMATS
CONVENIENCE STORES
This industry comprises establishments known as convenience stores or food marts
primarily engaged in retailing a limited line of goods that generally includes milk, bread, soda
and snacks in a 2000 to 3000 square foot store with speedy check out. They are the modern
version of the neighbourhood mom-and-pop grocery/general store.
DEPARTMENTAL STORES
This industry group comprises establishments known as department stores primarily
engaged in retailing a wide range of the following new products with no one merchandise line
predominating: apparel; furniture; appliances and home furnishings; and selected additional
items, such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery, toys,
and sporting goods. Merchandise lines are normally arranged in separate departments.
DISCOUNT STORES
This industry comprises establishments known as department stores that have central
customer checkout areas, generally in the front of the store. Department stores in this industry
offer a wide range of general merchandise (except fresh, perishable foods), limited service and
low prices.
SPECIALITY STORES
This industry concentrates on a limited number of complementary merchandise
categories and provides a high level of service in an area typically less than 8000 square feet.
In recent years, a specialty apparel store has been one of the weakest, slowest-growing areas
in retailing.
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CATEGORY KILLERS
This industry is much nearer to discount store that offers a narrow variety but deep
assortment of merchandise. These retailers are basically discount specialty stores. Most
category specialists use a self-service approach, but some specialists in consumer durables
offer assistance to customers.
SUPER CENTERS
This industry offers a wide variety of food and non-food merchandise. They are the
fastest growing retail category. Supercentres stock between 100,000 and 150,000 individual
items (SKUs). The store generally is spread across 150,000 to 220,000 square foot.
HYPER MARKETS
This industry is large combination food and general merchandise retailers. They
typically stock less than super centres, between 40,000 and 60,000 items ranging from
groceries, hardware, and sports equipment, to furniture and appliances, to computers and
electronics. The store generally is spread across 100,000 to 300,000 square foot.
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With real estate prices escalating due to increase in demand from the Indian
organized retail sector, it is posing a challenge to its growth. With Indian retailers having to
shell out more for retail space it is affecting their overall profitability in retail.
Trained manpower shortage is a challenge facing the organized retail sector in India.
The Indian retailers have difficulty in finding trained person and also have to pay more in
order to retain them. This again brings down the Indian retailers profit levels.
The Indian government has allowed 51% foreign direct investment (FDI) in the
India retail sector to one-brand shops only. This has made the entry of global retail giants to
organized retail sector in India difficult. This is a challenge being faced by the Indian
organized retail sector.
But the global retail giants like Tisco, Wal-Mart, and Metro AG are entering the
organized retail sector in India indirectly through franchisee agreement and cash and carry
wholesale trading. Many Indian companies are also entering the Indian organized retail
sector like Reliance Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing
stiff competition from these global retail giants. As a result disco becoming accepted
practices. This too brings down the profit of the Indian retailers.
Some of the reasons for this slow growth are:
* Retail not being recognized as an industry in India.
* The high costs of real estate
* High stamp duty.
* Lack of adequate infrastructure.
* Multiple and complex taxation system.
The opportunities in Indian organized retail sector are many for this sector is witnessing
boom.
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The retail industry in India amounted to US$ 200 billion in 2006, and out of this amount
Indian consumers behaviour pattern has changed. Now the Indian consumer gets more hefty
pay- packages, is younger, a large number of women are working, western influences, and
more disposable income have opened a lot of opportunities in Indian organized retail sector.
The Indian consumer wants to shop, eat and get entertainment in one place and is have also
Given Indian organized retail sector an opportunity to grow The Indian government in 2005
allowed foreign direct investment(FDI) in single brand retail up to 51%
Many Indian
companies seeing the various opportunities in organized retail sector in India Have entered it.
Pantaloons have decided to increase its retail space to 30 million square feet with an
investment of US$ 1 billion.
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COMPANY PROFILE
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COMPANY PROFILE
ORIGIN OF THE ORGANISATION
Aditya Birla Group entered the retail industry with the acquisition of Trinethra Super
Retail in 2007. Trinethra Super Retail had a strong footprint with over 172 stores spread across
four states - Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. In Tamil Nadu and Andhra
Pradesh, Trinethra brand was being used, while in Karnataka and Kerala, Fabmall brand was
being used. Later, all the stores were rebranded as more. Stores
The year 2007, for organised retail has begun with a bang. Birlas, who were mulling
over their entry in multi format multi brand retail for quite some time, have finally arrived. The
Rs. 40,000 crore, Aditya Birla group, through unlisted Aditya Birla Retail, in a single stroke, has
acquired a bouquet of over 172 retail stores, operating in southern India, with predominant
presence in Andhra Pradesh, under popular brand names of Trinethra and Fabmall. While most of
the group stores operate under Trinethra brand, stores located in Karnataka and Kerala operate
under Fabmall brand, although, 50,000 sq. ft. big hypermarket in Mysore is known as Fabcity.
Trinethra, prior to this acquisition, was aggressively pursuing its plan to set up new
stores in tier II cities such as Mysore, Coimbatore and Tirupur in southern region of the country.
Trinethra, which has adopted convenience and supermarket formats, is focused on selling food
and groceries in residential areas, although some of the stores also offer pharmaceutical products.
Trinethra also offers value-added services like forex remittances and bill payments. A typical
Trinethra store ad measures around 2,500 sq.ft. in retail space. The chain of stores are serviced
by an infrastructure of central warehouses in Andhra, Karnataka, Tamilnadu and Kerala, with a
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Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion
Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain. Subsequently Aditya Birla Retail Ltd. expanded
its presence across the country under the brand "More." with 2 formats Supermarket &
Hypermarket.
SUPERMARKET
More. for you - Conveniently located in neighbourhoods, More. supermarkets cater to
the daily, weekly and monthly shopping needs of consumers. The product offerings include a
wide range of fresh fruits & vegetables, groceries, personal care, home care, general merchandise
& a basic range of apparels. Currently, there are over 600 More. supermarkets across the country.
HYPERMARKET
More. MEGASTORE - is a one-stop shopping destination for the entire family. Besides
a large range of products across fruits & vegetables, groceries, FMCG products, More.
MEGASTORE also has a strong emphasis on general merchandise, apparels & CDIT.Two
hypermarkets operate under the brand More. MEGASTORE in Mysore and Vadodara.
More is a pan-India retail chain operated by the Aditya Birla Group company, Aditya
Birla Retail Ltd. Currently it has 509 supermarkets and 15 hypermarkets across the country. It
plans to increase it to 1,300 supermarkets and 65 hypermarkets respectively by 2016.
As per a report in Economic Times, Aditya Birla Retail Ltd ( ABRL) with its 500 +
'more' branded supermarkets and 14 hypermarkets reported sales of Rs 1,966 crore and a net loss
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of Rs 650 crore in the year ended March 2012. The company has accumulated losses of Rs 2,984
crore since it entered the segment over six years ago.
The third largest supermarket chain in the country after Future Group and Reliance
Retail has decided to increase its borrowing limit to Rs 7,500 crore from Rs 5,000 crore. The
firm plans to open 100 supermarkets and 6-8 hypermarkets this fiscal year.
Clubmore. Our loyalty programme, currently has a strong membership base of over
three million members.
Aditya Birla Retail Limited currently has an employee strength of around 10,000 people.
Key functions are headed by professionals with vast retail experience in India and globally.
Aditya Birla Retail Ltd provides customers a wide choice of products under its own
labels. The objective is to provide quality products at attractive price points to customers. Since
quality of the products is of prime importance, stringent quality norms have been set and
followed. All manufacturing partners are the best in their class.
Feasters,
Kitchen's Promise, and
Best of India
More.Enriche
110%,
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Pestex
Paradise
Germex
VALUES
1. Integrity
2. Commitment
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3. Passion
4. Seamlessness
5. Speed
MANAGEMENT TEAM
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Customer Focus
Our customer is in the centre of whatever we do. We listen to our customers - anticipate
their needs and consistently meet and exceed their expectations. We create value in partnership
with them.
Total Quality
We are passionate about quality. We believe in continuous improvements through
innovation, process improvement and team work.
People Empowerment
We encourage employees to take risk and ownership for all their actions, take pride in
their achievements and celebrate small success.
Integrity
We act ethically, honestly and with transparency. Honesty is the cornerstone in all our
dealings, be it with our employees, customers, suppliers, partners, shareholders, the communities
we serve or the Government.
Global Mindset
We think globally and the world is our stage to play in. In all our operating geographies,
we respect cultural diversity and provide equal opportunities for all of our employees to voice
their opinions, to learn, to contribute, and to grow.
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2014
ABRL CFO Atul Daga felicitated for driving Winning Edge in Strategy
more. Megastore Most Admired Food & Grocery Retailer of the Year,
Large Format
2013
Most admired Retailer of the Year for Effective Supply Chain &
Logistics
2012
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Master
Brand
Award
2012
World
Brand
Congress
We are Proud to announce that Aditya Birla Retail Ltd was presented with
the "Master Brand Award 2012" By the World Brand Congress on...
Retail Best Employer of the Year & CEO of the Year Asia Retail
Congress
2012
Aditya Birla Retail Limited was presented the prestigious "Retail Best
Employer of the Year" award by the global jury of the Asia Retail Congress
2012...
2011
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2010
Most Admired Retailer in India for the Food & Grocery Segment
Awarded to Thomas Varghese, CEO ABRL
2009
2007
Aditya Birla Group ranked the No. 1 Best Employer by the Hewitt Economic Times Survey 2007.
The US $ 24 billion Indian conglomerate, Aditya Birla Group, was ranked
number one in India and among the best in Asia...
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Golden Spoon Award - Most Admired Food Retailer of the Year: Private
label F&G brand
The Coca-Cola Golden Spoon Awards honors enterprise, innovation and
achievement in the business of food...
With the opening of first store in Pune and announcing its retail plans, the Aditya Birla
Group has finally joined the crowded retail space. And from the voices in the media, its not far
when the group has a pan-India retail presence.
Organised retailing is just 3% of total retail market but still a debatable point whether
the Birlas are an early or a late entrant. Since Pantaloons, Spencers, Subhiksha and Reliance have
already set up a good base, More stores may find hard to invade the territory which these stores
have already captured in their respective locations.
But even then, key factors which may influence the buying pattern of consumers hinge
on convenience in terms of distance from home, pricing and giving the right product-mix catering
to different social and economic class. Since, organised retail has thin margins and high costs of
around 15% to the revenues (as compared to 5-6% of local grocery stores), retail companies
should promote more their in-house brands which have a higher mark up.
Aditya Birla More strategy to offer budget and high value private labels under More
for you and Selecta seems to be like successful UKs Tesco model of having seperate labels
with seperate quality and prices for the same product category.
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Till Bharti- Walmart enters the market, the key competitor for More shall be Reliance
Retail as they have similar store formats and product offerings. But the real tough part will be
when these two companies launch their hypermarkets, in which Pantaloons Big Bazaar still rules
the space in terms of nationwide presence , and then differentiation would play a key role.
But like telecom, when the markets get mature, there are not many differentiating factors
in terms of pricing and service quality, similarly once few big players get established in retail
market, each one would carve a separate niche of their own with their own sets of customers and
markets.
PRESENT STATUS OF THE ORGANISATION
ADITYA BIRLA RETAIL LTD is having 650 MORE stores all over INDIA . Pune
was the first place where first store was opened.350 stores are in SOUTH and 300 in REST OF
INDIA. Karnataka is having 104 stores in which BANGALORE is having 64 stores.
.
More. for you is committed to deliver quality & value to our customers and have a range
of private label brands as well as commercially branded products, offering - 100% satisfaction on
the quality of the products & services offered.
More. for you hosts a range of private label brands across various categories that
follow stringent quality norms, and are available in attractive prices and packaging. Our premium
products give you the opportunity to enjoy the difference and quality that is equal to or better than
the market's leading brands, but at competitive prices.
Recently our private label brands received the coveted "The Most Admired Private
Label" Golden Spoon award at the Food Forum India.
More. for you offer a wide range of assortment of over 4000 products, ranging from
fresh food to beverages, grocery to household care products. There range covers everything,
from day-to-day essentials to traditional favourites, from delicious treats, to healthy alternatives.
To ensure the freshest supply of fruits and vegetables for you, they have built direct
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linkages with the farmers for daily supplies of farm fresh produce.
Our stores are built with a modern and comfortable ambience, air conditioned and with
speedy automated cashiering to help you shop better. They also have friendly in-store policies on
exchange and returns that help you shop with ease and comfort.
Furthermore, to make shopping experience more rewarding with them, at More.for you
they offer a membership program ClubMore.which reinforces our commitment to consistently
add value to your shopping experience, and also to thank you for choosing to be a part of
More.for you. As a Clubmore.member, you are entitled to special benefits, besides the regular
offers and promotions at More.for you.
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The sector may also face hurdles as owing to non-clarity of FDI in retail, foreign chains have
postponed their plans of entry into India.
"Our Mission is to Change the Way People Shop. We Will Give Them More."
HR AND TRAINING
PROJECT AND BUSINESS DEVELOPMENT
COMMERCIAL AND ACCOUNTS
ADMINISTRATION
IT
LEGAL
LOSS PREVENTION AND RISK MANAGEMENT
MARKETING
SUPPLY CHAIN
ORGANIZATIONAL STRUCTURE
CHAIRMAN
CEO
SUPERMARKET
HYPERMARKET
4 REGIONAL HEADS
2 ZONAL HEADS
2 TERRITORY MANAGERS
10 CLUSTOSTORE MANAGERS
SUPERVISOR
ASSISTANT SUPERVISOR
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At More. for you we are committed to deliver quality & value to our customers and
have a range of private label brands as well as commercially branded products, offering - 100%
satisfaction on the quality of the products & services offered.
More. for you hosts a range of private label brands across various categories that follow
stringent quality norms, and are available in attractive prices and packaging. Our premium
products give you the opportunity to enjoy the difference and quality that is equal to or better than
the market's leading brands, but at competitive prices.
Recently our private label brands received the coveted "The Most Admired Private
Label" Golden Spoon award at the Food Forum India. We offer a wide range of assortment of
over 4000 products, ranging from fresh food to beverages, grocery to household care products.
Our range covers everything, from day-to-day essentials to traditional favorites, from delicious
treats, to healthy alternatives. To ensure the freshest supply of fruits and vegetables for you, we
have built direct linkage with the farmers.
MORE provide some private labels also,
Own label Food Brands
more.,
Feasters.
Kitchen's Promise
and Best of India.
Following is the range of products offered by MORE stores to its customers. There are various
products and services offered by MORE supermarket and hypermarket.
SUPERMARKET
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Bakery *
Beauty Concepts *
Beverages
Mobile Store *
Basic Apparels
Processed Food
Pharmacy *
Ready to Cook/Prepared
Food
FMCG Products
Grocery
Staples
General Merchandise
Stationery
Women's Accessories
HYPERMARKET
STORE OPERATIONS
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Bakery
Luggage
Beverages
Processed Food
Do it yourself
Auto Accessories
Electronics
Sporting Goods
FMCG Products
Staples
Footwear
Stationery
Two Wheelers
Furniture
Toys
General Merchandise
Home Care Products
Home Decor Products
Home Needs & Home Upkeep
Services
For your additional benefit, Consumer Finance on electronics products such as: Audio &
Video and Large White Appliance are available at More.MEGASTORE
Page 41
STORE OPERATIONS
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Birlas acquiring march does not stop here. The company is planning to acquire Piramid
Retail and Niligiris. The latter will give Birla Retail, pan south-India presence. They are also
planning to open 172 hypermarkets and supermarkets starting from Pune.
Apart from operating two hypermarket stores under the umbrella brand name of More.
for you at Mysore and Vadodara, the retail arm of the group operates around 670 supermaket
format, neighbourhood food, grocery, and general merchandise, stores across the country. These
stores include the erstwhile stores of Trinethra retail chain, which after the acquisition were also
rechristened as More stores.
More, under the stewardship of its new CEO Thomas Varghese, an old Birla hand, who
was roped in after the SumantSinha, has taken several initiatives to revamp the operations of the
loss making chain. Some of the initiatives include: Close some of the non performing stores. Take
a re-look at the design, positioning and merchandise offered by the retail chain. Focus more on
large sized stores. The retailer will set up hypermarts of 30,000 to 40,000 sq. ft. space each.
Aggressively expanding the retail network; add 200 Supermarket stores and 12 Hypermart stores
in 2009-10.Renegotiation of property rentals for almost all leased properties with their landlords.
The rents in some cases have come down by 30 to 40 percent. Introduction of private labels,
mostly in fast moving consumer products category, to increase share of private labels to 40 per
cent in the next 4 to 5 years.
Look for earning rent from shop-in-shop opportunities. Recently, Dial for Health
wellness retail chain owned by Zydus group has inked an agreement to set up such outlets in
Gujarat and Maharashtra.
Look for a financial partner. We are not looking at a strategic partner. We will be happy
to have a financial partner. We have received lots of preliminary interest from investors. We
would be open to this idea, said Kumar Mangalam Birla. Some private equity firms like
Warburg Pincus are believed to have shown interest equity stake in the company.
Aditya Birla group, incidentally, also operates 340 apparel stores across the country of
brands like Louis Phillippe, Van Heusen, Allen Solly and Esprit in the lifestyle and value fashion
segments. These stores are operated by Madura Garments Lifestyle & Retail and Peter England
Fashions & Retail, which are part the groups flagship company Aditya Birla Nuvo. The
STORE OPERATIONS
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garments business, which clocked Q4 turnover of 273.3 crore (2008-09) and a nett loss of Rs.
82.2 crore during the quarter, has also embarked on several measures to stem the rot, including
closure of 30 stores that will save around Rs 100 crore a year.
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STORE OPERATIONS
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STORE OPERATIONS
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CHAPTER-3
THEORETICAL FRAMEWORK
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STORE OPERATIONS
As a regular shopper you must have visited many retail outlets to make your
purchases.Whenever you go to a retail store,you are on the lookout for products which fulfill
your needs.It is better on the part of the retailers that the customers doesnot come with a
shopping list.In such situations,majority of the buying done by the customer in the store is
impulsive in nature.It is the merchandise which is displayed in the store that arouses the
attention of the customer and in turn this develops into the urge in the customer to buy the
merchandise.One very important aspect of the market which a retailer has to keep in mind is the
positioning of his store. It is essential for a retailer to decide upon his positioning strategy. It is
this strategy which will not only guide the formulation of the communication strategy but also
pricing, merchandising and layout related issues for the retailer. This gives a distant and unique
position to the retail outlet. The effective use of technology and design element is the key to
higher clicks, browsing time and sales .Now, let us consider the briefed factors in detail. It would
be appropriate to know about the management of retail store operations.Management of retail
store operations is a challenging and sensitive task.It requires integration among various retail
transactions within the stores.Such as product display,visual merchandising,management of
human resources,financial management etc.However,we shall study the issues relating to
financial management in retailing,performance measures and auditing process in a retail
organisation which helps for smooth and profitable functionality of a retail setup.Moreover,we
will learn the importance of relationship marketing and Customer Relationship Management
and its importance in detail.We will also deal with the establishment of Loyality programme and
their importance.We then conclude with different financial instruments involved in measuring the
profitability of a retail setup and the process involved in monitoring the performance in the retail
operations. Store operations is exactly what it is operating and overseeing all the functions of the
store from setting of shop, deciding what type of store you want, what products you want to sell
deciding on what type of customers you are trying to attract in your store, then ordering products,
hiring personnel, pricing the products, deciding on a location, taking an inventory, advertising
STORE OPERATIONS
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the products etc., and it would be categorized as business.The study of retail store operations
consists of different aspects these different aspects may performed by the staff daily in store.
STORE ATMOSPHERE
The store must offer a positive ambience to the customers for them to enjoy their
shopping and leave with a smile.ABRL is committed to assure our consumers of the quality of
products and services on a consistent basis.ABRL keeps the consumers at the centre of
everything they do and are committed to earn trust and recognition of ABRL.
Store Atmosphere involves in following:
The products are properly arranged on the shelves according to their sizes and patterns. Make
sure products do not fall off the shelves.
The floor, ceiling, carpet, walls and even the mannequins should not have unwanted spots.
Never dump unnecessary packing boxes, hangers or clothes in the dressing room. Keep it
clean.
Opening of the store is made with security along with first incharge of the store.
Keep a close watch on the customers.
Each and every merchandise should have a security tag.
Ask the individuals to submit carry bags at the security.
Make sure the sales representative handle the products carefully.
Clothes should not have unwanted stains or dust marks as they lose appeal and fail to
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CUSTOMER SERVICE
Customers are assets of the retail business and the retailer cant afford to lose even a
single customer.
Greet customers with a smile
The sales representatives should help the individuals buy merchandise as per their need
and pocket.
The retailer must not oversell his products to the customers. Let them decide on their
own.
Give the individual an honest and correct feedback. If any particular outfit is not looking
good on anyone, tell him the truth and suggest him some better options.
Never compromise on quality of products. Remember one satisfied customer brings five
more individuals to the store. Word of mouth plays an important role in Brand Promotion
CASH HANDLING
Cash management is one of the main aspect which Store Operations involves.Major
aspects related to retail depends upon cash.ABRL handles cash management in a systematic
manner which helps the firm to reach its targets.Daily Sales Report has to be submitted to
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Mumbai at 8:00 A.M.All the cashiers using their own login for cashering.One of the most
important aspects of retailing is cash handling.
It is essential for the retailer to track the daily cash flow to calculate the profit and loss of
the store.
which a customer makes a payment to the merchant in exchange for goods or services. At the
point of sale the retailer would calculate the amount owed by the customer and provide options
for the customer to make payment. The merchant will also normally issue a receipt for the
transaction. The POS in various retail industries uses customized hardware and software as per
their requirements. Retailers may utilize weighing scales, scanners, electronic and manual cash
registers, EFTPOS terminals, touch screens and any other wide variety of hardware and software
available for use with POS.
The modern point of sale is often referred to as the point of service because it is not just
a point of sale but also a point of return or customer order. Additionally it includes advanced
features to cater to different functionality, such as inventory management, CRM, financials,
warehousing, etc., all built into the POS software. Prior to the modern POS, all of these functions
were done independently and required the manual re-keying of information, which can lead to
entry errors
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VISUAL MERCHANDISING
Visual merchandise,also referred to as display,is defined as the presentation of products
in order to sell them.Goods displayed shout to the world that the retailer cares about his image
and merchandise and most importantly,about entertaining, informing and educating his
customers.Frequent changes encourage the customer visiting his normal section to also wander
about and discover novelties.
Visual merchandising includes various aspects like:Store floor plan,Store
windows,Signs,Merchandise display,Space design,Fixtures and hardware and the elements that
come with it which may be too many to mention.Visual merchandise elements are put into
practice from designing the floor plan of the store to the beautiful mannequins that grace the
store floor.
ABRL visibility mails will be sent by Mumbai. It has to be printed and execution must
be completed within 24 hours of its release. It has to checked and store manager need to sign at
the top of the sheet of the file.
made immediately.
Light and subtle colours for the walls is maintained in MORE. to set the mood of the
walk-ins.
The signage displays all the necessary information about the store and is installed at the
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INVENTORY MANAGEMENT
.
Inventory management involves creating a purchasing plan that will ensure that items
are available when they are needed (but neither too much nor too little is purchased) and
keeping track of existing inventory and its use.It also includes managing the physical quantities
as well as the costing of the goods as it flows through the supply chain.
Two common inventory management strategies are followed:
Just In-Time method
Where companies plan to receive items as they are needed rather than maintaining high
inventory levels.
Materials requirement planning
Which schedules material deliveries based on sales force
Inventory management moves with the primary objective of determining /controlling stock
levels within the physical
availability against the need for minimising stock handling and holding costs.
STAFF MANAGEMENT
It is a feature highlighting the strategies of retailers are using to improve work force
management.This installment spotlights Staff management. Trained, knowledgeable sales
associates can deliver great in store customer experiences, but their tasks must parallel shifting
labor requirements, available capacity, budgets and customer demands. Sophisticated, real-time
Staff management tools allow retailers to create, assign, allocate and control tasks for optimised
staff performance and increased customer satisfaction.
More. retail store is very focused on providing single, prioritized place for managers and
associates to view their tasks and create a fabulous experience in store. Staff briefing is done to
train and properly induct them personally.
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personally.
Reasons for Voids and Refunds mentioned with Cluster manager sign in previous visit
STATUTORY COMPLIANCE
Statutory compliance Statutory means of or related to statutes, or what we normally
call laws or regulations. Compliance just means to comply with or adhere to.So statutory
compliance means you are following the laws on a given issue.The term is most often used with
organizations,who must follow lots of regulations.when they forget or refuse to follow some of
those regulations,they are out of statutory compliance.
statutory compliance.Many companies are out of statutory compliance, in part because the cost
of following the rule is too high ,and or the consequence is too small to worry about.
Timely and efficient statutory compliance process means:
Trade License
Drug License
Insecticide License
Fire License
FSA - Food License
W&M Weighing License
Form -3 License
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Fore court light is clean , hygienic and in good working condition.These infra has been
checked accordingly.
Glow sign board Sign board is More. board which will be switched on 6:00 pm to 9:30
pm.
Security desk should be with paint and tokens should be new.
Trolleys,baskets are displayed convenient to customers and placed at a right place.
Store grill or shutters are in good condition and main entry glass door is clean and in
working condition.
Chillers,freezers,pestro plus light ,fire extinguishers and so on will be maintained in good
condition.
Cash till scanners,cash till EDC machines ,printers ,invertors is in good condition.
Customer feed back box / Customer complain signage is placed in More. at entrance
near door.
Data Strips / Shelf edge strips is updated and motivated.
Every store to check elements and also for promoting stock.
STORES MANAGEMENT
A professionally managed Stores has a process and a space within, to receive the
incoming materials (Receiving Bay), keep them for as long as they are not required for use
(Custody) and then to move them out of stores for use (Issue).In a manufacturing firm this
process forms a cycle to maintain and run the activities of Stores.The basic responsibilities of
stores are to act as custodian and controlling agent for parts,supplies, and materials, and to
provide service to users of those goods.Typically and at times essentially, a Stores has to follow
certain activities that are managedthrough use of various resources and are thus called Stores
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Management.The task of storekeeping relates to safe custody and preservation of the materials
stocked, totheir receipts, issue and accounting.The objective is to efficiently and economically
provide the right materials at the time when it isrequired and in the condition in which it is
required.The basic job of the Stores Manager hence is to receive the goods and act as a caretaker
of thematerials and issue them as and when Production demands it. Needless to say
storekeepingactivity does not add any value to the product. In fact it only adds to the cost. The
organizationhas to spend money on space ie. expenditure on land, building and roads,
equipment,machinery and other facilities provided such as electricity, people i.e. salaries and
wages,insurance, maintenance costs, stationary, communication expenses and the cost to
maintainthe inventory etc. All of these get added to the organisational overheads and finally
getreflected in the costing of the finished product. However, it is an essential function in any
manufacturing or marketing organization. This basic reason has propelled the evolution of
philisophies such as JIT, JIT II etc.
Thus , the basic functions , to manage a stores, carried out are:
It all starts with a suitable Lay out design of stores. Depending upon the nature of items used
for processing by the organisation the lay out and type of stores are selected. For example , a
process that requires use of raw materials , not costly enough, an open and nearby stores with
truck / rail inside movement possibility can be adequate. Similarly, for storing costly material,
aclosed and restricted type of stores shall be needed.However, irrespective of the type and lay out
, any Stores would have , as its starting activity ,receiving and accounting of the incoming goods.
This part of Stores is known as ReceivingBay.Once the material has been received and cleared
through inspection and accepted for use, itneeds safe custody till it's actually used.It calls for a
separate physical storage space , open or closed, as per need. It maintains alldocuments that are
able to trace an item , show all its details and preserve it up to its shelf lifein the manner
prescribed or till it is issued for use.This part of Stores is called Custody.
This activity is known as Disposal of goods for which auction etc isdone.Since the
material has a cost , the organisation would definitely like to incur optimum cost onthis account
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and thus there is a need to manage the materials within a stores such that thetotal cost of
maintaining materials remains optimum.The materials , lying unused but have future economic
value are said to form inventory whichneeds professional handling. Inventory control /
management thus is a vitally important aspectof any stores function. One of the basic functions
of stores is to account for every materialreceived in Stores by maintaining proper records of all
the incoming, stored and outgoingmaterials so that proper accounting and audit trail is
maintained.Hence , record keeping is a vital function of stores . Of course , it also goes along the
variousactivities and with development in the information technology domain, the record
keeping instores too is through electronic medium making the whole process smooth and
efficient.Any Stores as such is a physical entity which deals with material receipt , preservation
andissue. Material handling therefore is another vital function.Just as Lay out of a Stores is
designed considering the nature of material Stores has to handle,material movement equipment
and implements also are important.
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which reduces their income taxes in times of inflation, but with International Financial
ReportingStandards banning the use of LIFO, more companies have gone back to FIFO. LIFO is
only used in Japan and the U.S.The difference between the cost of an inventory calculated under
the FIFO and LIFO methods is called the LIFO reserve. This reserve is essentially the amount by
which an entity's taxable income has been deferred by using the LIFO method.
CENTRALIZED STORES
A centralized store is that store which receives materials for and issues them to all
departments, divisions and production floors of the company. Such a store is only one in the
company which receives materials for and issues to all who need them.The materialsrequired for
all the departments and branches are stored and issued by only one store.
DECENTRALIZED STORES
A decentralized store is that type of store which receives materials for and issues them
to only one department and not to the whole company. The decentralized store may be in many
numbers in the company, as each department has its own such store. Purchasing andhandling of
materials are undertaken by each and every department separately. If the volume of material
activities is large, this type of store is suitable because each and every branch hastheir own store
for facilitating smooth operations of their production activities.
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SCM can be seen as the process of strategically managing the procurement, movement
and storage of materials & parts & finished goods inventory (related information flows) through
the organisation & its marketing channels in such a way that current & future profitability are
maximized through the cost effective fulfillment of orders. Supply chain management is a total
system approach to managing the entire flow if information materials and services from raw
material suppliers through factories and ware houses to the end user. a company supply chain
boundary can be up to its direct suppliers to consumer. The integration of key business processes
from end user through original suppliers that provide products, devices and information that
added value for the customers and other stake holders.
Materia
ls &
Vendor
s
Design
Product
ion
SCM
Scope
&
Develop
ment
Custom
ers
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Marketi
ng
Sales &
Distrib
ution
Revers
e
Logistic
s
Value Chain
Material
Supplier
Manufacturers
Distribution
Logistics
Profit Margin
Customers
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ISSUES IN SCM
A supply chain encompasses all the activities, functions and facilities involved in
producing and delivering a product and/or service, from suppliers (and their suppliers) to the
customers. The supply chain management (SCM) paradigm is geared towards optimizing each
component of what used to be called (Production and) Operations management (production,
warehousing, inventory, transportation and distribution etc.) and the inter-links between these
components synergistically. In the 70s and the 80s, various models for production and
operations control and management were developed : Just-In-Time (JIT) Inventory management
model, Vendor Managed Inventory (VMI) model, Zero Inventory (ZI) model, Total Quality
Management (TQM) etc[1]. These models focussed on the various components of the supply
chain in isolation, this implies that these models were oriented towards the optimization of a subpart of the system whereas the SCM paradigm aims at the optimization of the full chain. This
leads to trade-offs among the different components of the supply chain. For example, JIT would
require a factory to keep inventories low and produce and distribute products in a timely manner,
however JIT ignores many other aspects which cannot be seen independently, e.g. if the
availability of the input materials is uncertain and irregular, the factory may need to insure
smooth and continuous production. Similarly, regional stocking may permit reductions in
transportation costs through increased shipment consolidation, as well as expanded sales through
better delivery performance. These improvements may be accomplished with only moderate
increases in inventory and warehousing cost(s). However, in an environment where different
functional units manage the various logistics activities independently, an organization is less
likely to properly analyze such important trade-offs.Globalization is One of the biggest
challenges that companies are facing is how to reduce their supply chain cost. In order to satisfy
customers price expectations, companies have opted to relocate manufacturing to low cost
countries around the world in an effort to reduce direct and indirect costs and to minimize taxes.
A product is released and customers rapidly pressure companies to come up with the next big
thing. Innovation is important since it allows companies to stay competitive in the market, but
its also a challenge. To enhance a product, companies have to redesign their supply network and
meet market demand in a way thats transparent for customers.
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The integrating processes that create the links between the supply and demand chains.This
implies that the planning processes (which involves development of channel strategies,
planning of manufacturing, inventory, distribution and transportation, demand planning and
forecasting; and marketing and promotional planning) and service processes (which includes
functions such as credit, order management, load planning, billing and collection, etc.) must
be integrated. This integration must be done across the boundaries of the enterprises. If each
participating organization in the chain formulates its own plans on the basis of its own private
information, then there is no way to integrate the supply and demand chain processes that
they share.
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The supporting information technology (IT) infrastructure that makes such integration
possible. While information technology is needed to handle routine transactions in an
efficient manner, it can also play the a critical role in facilitating the timely sharing of
planning, production and purchasing information; capturing and analyzing production,
distribution and sales data at new levels of detail and complexity. Information technology
provides an integrating tools that makes it possible to convert data into meaningful pictures
of business processes, markets and consumers that are needed to feed company strategies in
order to develop competitive advantage.
On the administrative side, such elements as flow path economics, which help
organizations understand the real drivers of costs, and new performance and measurement
standards that align functions in accordance with total process goals that are critical to achieving
integration.
SCM FRAMEWORK
A framework to understand the various issues involved in SCM is provided by the
pyramid structure for the SCM paradigm (fig. 4) The pyramid allows issues to be analysed on
four levels:
Strategic
On the strategic, level it is important to know how SCM can contribute to the
enterprises basic value proposition to the customers? Important questions that are addressed
at this level include : What are the basic and distinctive service needs of the customers? What
can SCM do to meet these needs? Can the SCM capabilities be used to provide unique services
to the customers? etc.
Functional
This is the level where operational details are decided upon. Functional excellence
requires that the optimal operating practices for transportation management, warehouse
operations, and materials management (which includes forecasting, inventory management,
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production scheduling, and purchasing) are designed. These strategies should keep in view the
trade-offs that may need to be made for the overall efficiency of the system. Achieving
functional excellence also entails development of a process-oriented perspective on
replenishment and order fulfillment so that all activities involved in these functions can be well
integrated.
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Receiving the items from dc to store and send back the damaged items to dc
In receiving process the store manager plays a key role. In receiving time first check the
receive goods/products in transfer note. After checking process receive the products/goods. After
receiving process breaking the bulk and divided products into different categories.
CSA(customer service associative) stocking
gondolas/racks.
After receiving the stock if any damaged stock is occurred those items will be sent back
to dc. In that manner some RTV(return to vendor) stock also send to dc then after to the vendor.
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4.People Centered: Human Resource Management is people centered and is relevant in all
types of organisations. It is concerned with all categories of personnel from top to the bottom of
the organisation. The broad classification of personnel in an industrial enterprise may be as
follows : (i) Blue-collar workers (i.e. those working on machines and engaged in loading,
unloading etc.) and white-collar workers (i.e. clerical employees), (ii) Managerial and nonmanagerial personnel, (iii) Professionals (such as Chartered Accountant, Company Secretary,
Lawyer, etc.) and non-professional personnel.
5.Personnel Activities or Functions: Human ResourceManagement involves several functions
concerned with the management of people at work. It includes manpower planning, employment,
placement, training, appraisal and compensation of employees. For the performance of these
activities efficiently, a separate department known as Personnel Department is created in most of
the organisations.
6.Continuous Process: Human Resource Management isnot a one shot function. It must be
performed continuously if the organisational objectives are to be achieved smoothly.
7.Based on Human Relations: Human ResourceManagement is concerned with the motivation
of human resources in the organisation. The human beings cant be dealt with like physical
factors of production. Every person has different needs, perceptions and expectations. The
managers should give due attention to these factors. They require human relations skills to deal
with the people at work. Human relations skills are also required in training performance
appraisal, transfer and promotion of subordinates.
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Human Resource Management leverages setting up the systems and procedures for ensuring
efficiency, controlling and providing equality of opportunities for all working for the
organisation.
Human Resource Management (HRM) differs from Personnel Management (PM) both in
scope and orientation. HRM views people as an important source or asset to be used for the
benefit of organisations, employees and society. It is emerging as a distinct philosophy of
management aiming at policies that promote mutuality-mutual goals, mutual respect, mutual
rewards and mutual responsibilities. The belief is that policies of mutuality will elicit
commitment, which in turn, will yield both better economic performance and greater Human
Resource Development (HRD). Though a distinct philosophy, HRM cannot be treated in
isolation. It is being integrated into the overall strategic management of businesses. Further,
HRM represents the latest term in the evolution of the subject.
There are several similarities between Human Resource Management (HRM) and
Personnel Management (PM) (a) Both models emphasise the importance of integrating
personnel/HRM practices with organisational goals. (b) Both models vest Personnel/HRM firmly
in line management. (c) Human Resource Management (HRM) and Personnel Management
(PM) both models emphasise the importance of individuals fully developing their abilities for
their own personal satisfaction to make their best contribution to organisational success. (d) Both
models identify placing the right people into the right jobs as an important means of integrating
personnel/HRM practice with organisational goals.
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1. To ensure effective utilisation of human resources, all other organisational resources will be
efficiently utilised by the human resources.
2. To establish and maintain an adequate organisational structure of relationship among all the
members of an organisation by dividing of organisation tasks into functions, positions and jobs,
and by defining clearly the responsibility, accountability, authority for each job and its relation
with other jobs in the organisation.
3. To generate maximum development of human resources within the organisation by offering
opportunities for advancement to employees through training and education.
4. To ensure respect for human beings by providing various services and welfare facilities to the
personnel.
5. To ensure reconciliation of individual/group goals with those of the organisation in such a
manner that the personnel feel a sense of commitment and loyalty towards it.
6. To identify and satisfy the needs of individuals by offering various monetary and nonmonetary rewards.
In order to achieve the above objectives, human resource management undertakes the following
activities:
i.
Human Resource Planning, i.e., determining the number and kinds of personnel required
ii.
iii.
iv.
v.
vi.
vii.
productivity.
Social security and welfare of employees.
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Managerial Functions
Following are the managerial functions of Human Resources Management.
1. Planning: The planning function of human resource department pertains to the steps taken in
determining in advance personnel requirements, personnel programmes, policies etc. After
determining how many and what type of people are required, a personnel manager has to devise
ways and means to motivate them.
2. Organizing: Under organization, the human resource manager has to organize the operative
functions by designing structure of relationship among jobs, personnel and physical factors in
such a way so as to have maximum contribution towards organizational objectives.
In this way a personnel manager performs following functions :
a)
b)
c)
d)
3. Directing: Directing is concerned with initiation of organisation and stimulating the people to
work. The personnel manager directs the activities of people of the organisation to get its
function performed properly. A personnel manager guides and motivates the staff of the
organisation to follow the path laid down in advance.
4. Controlling: It provides basic data for establishing standards, makes job analysis and
performance appraisal, etc. All these techniques assist in effective control of the qualities, time
and efforts of workers.
Operative Functions
The following are the Operative Functions of Human Resource Management.
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1. Procurement of Personnel: It is concerned with the obtaining of the proper kind and number
of personnel necessary to accomplish organization goals. It deals specifically with such subjects
as the determination of manpower requirements, their recruitment, selecting, placement and
orientation, etc.
2. Development of Personnel: Development has to do with the increase through training, skill
that is necessary for proper job performance. In this process various techniques of training are
used to develop the employees. Framing a sound promotion policy, determination of the basis of
promotion and making appraisal are the elements of personnel development function.
3. Compensation to Personnel: Compensation means determination of adequate and equitable
remuneration of personnel for their contribution to organization objectives. To determine the
monetary compensation for various jobs is one of the most difficult and important function of the
personnel management. A number of decisions are taken into the function, viz., job-evaluation,
remuneration, policy, inventive and premium plans, bonus policy and co-partnership, etc. It also
assists the organization for adopting the suitable wages and salaries, policy and payment of wages
and salaries in right time.
4. Maintaining Good Industrial Relation: Human Resource Management covers a wide field.
It is intended to reduce strifes, promote industrial peace, provide fair deal to workers and
establish industrial democracy. It the personnel manager is unable to make harmonious relations
between management and labor industrial unrest will take place and millions of man-days will be
lost. If labor management relations are not good the moral and physical condition of the
employee will suffer, and it will be a loss to an organization visa-a-visa nation. Hence, the
personnel manager must create harmonious relations with the help of sufficient communication
system and co-partnership.
ORGANIZATIONAL STRUCTURE:
In Andhra Pradesh region there are two regions those are Visakhapatnam and
Vijayawada. 19 stores are under Visakhapatnam region and 34 stores are under Vijayawada
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Visakhapatnam
Vijayawada
These two regions covers the entire Andhra Pradesh state. From these states only the
distribution will start. The stock will go the stores and each and every employee will attend the
interview in these two regions only. Attendance will update regularly though mail to HR. and he
take care the employee details.
The requirements of a CSA(Customer service associative):
1. Letter of appointments (4)
2. Employee information form
3. Contact details
4. Employee joining form
5. Joining report
6. Code of conduct form
7. Relation declaration form
8. Medical reports
9. Photo copies (7)
10. Confirmation letter
11. Sexual harassment form
12. Pf form & declaration (form 2)
13. ESI declaration form
14. Gratuity nomination (F)
15. Employer nomination form
16. Study certificates
17. Address proof
18. ID proof
19. Reference check form
20. Family post card size ESI
21. Bank account number
22. Bank name
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The above mentioned are mandatory for each and every employee in the organization. If
any person was not having any bank account the company opens the account in the ING Vysya
bank. Every month salary will be transferred to their respective accounts at the end of the month.
There are 370 employees in the Vijayawada region.
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CRM products
CRM products come with many features and tools and it is important for a company to
choose a product based on their specific organizational needs. Most vendors will present
information on their respective websites.
Features These are what the product actually does and what value it can provide to an
organization.
Support Many CRM vendors have a basic level of support which generally only
includes email and/or access to a support forum. Telephone support is often charged in either
an annual or ad hoc pricing strategy. Some companies offer on-site support for an extra
premium.
Pricing This will be shown either per-user or as a flat price for a number of
users. Vendors charge annually, quarterly, or monthly with variable pricing options for
different features.
Demonstration Periods Many vendors offer a trial period and/or online demonstrations.
Characteristics of CRM
input,
one-to-one
solutions
to
customers requirements,
direct
online
communications with customer and customer service centers that help customers solve their
issues.
Sales force automation. This function can implement sales promotion analysis, automate
tracking of a clients account history for repeated sales or future sales, and also oordinate
sales, marketing, call centers, and retail outlets in order to realize the salesforce automation.
Use of technology. This feature is about following the technology trend and skills of
value delivering using technology to make up-to-the-second customer data available. It
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Increasingly CRM is expanding outside of the core sales and marketing areas and
systems are available that incorporate support and finance data also into the CRM view that a
user gets, enabling a wider holistic view of a customer from one screen for a user.
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TYPES
CRM in customer contact centres
CRM systems are customer relationship management platforms. The goal of the system is
to track, record, store in databases, and then determine the information in a way that increases
customer relations (predominantly increased ARPU, and decreased Churn). The CRM codifies
the interactions between you and your customers so that you can maximize sales and profit using
analytics and KPIs to give the users as much information on where to focus their marketing and
customer service to maximize revenue and decrease idle and unproductive contact with your
customers. The contact channels (now aiming to be omni-channel from multi-channel) use such
operational methods as contact centers. The CRM software is installed in the contact centers, and
help direct customers to the right agent or self-empowered knowledge. CRM software can also
be used to identify and reward loyal customers over a period of time.
Growing in popularity is the idea of gamifying customer service environments. The
repetitive and tedious act of answering support calls all day can be draining, even for the most
enthusiastic customer service representative. When agents are bored with their work, they
become less engaged and less motivated to do their jobs well. They are also prone to making
mistakes. Gamification tools can motivate agents by tapping into their visceral need for reward,
status, achievement, and competition.
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manage, improve, or facilitate sales, support and related interactions with customers, prospects,
and business partners throughout the enterprise. It assumes that CRM is involved in
every B2B transaction.
Despite the general notion that CRM systems were created for the customer-centric
businesses, they can also be applied to B2B environments to streamline and improve customer
management conditions. B2C and B2B CRM systems are not created equally and different CRM
software applies to B2B and Business-to-Customer (B2C) conditions. B2B relationships usually
have longer maturity times than B2C relationships. For the best level of CRM operation in a B2B
environment, the software must be personalized and delivered at individual levels.
In B2B there are less figure propositions, but in some cases they cost a lot more than B2C
items
B2B CRM must be easily integrated with products from other companies. Such
integration enables the creation of forecasts about customer behavior based on their buying
history, bills, business success, etc.
An application for a B2B company must have a function to connect all the contacts,
processes and deals among the customers segment and then prepare a paper
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A crucial point is personalization. It helps the B2B company to save strong and longlasting relationships with the customer. To help the company communicate with their clients
more effectively, there should be integration with the company's email system.
Small business
For small businesses a CRM system may simply consist of a contact manager system
which integrates emails, documents, jobs, faxes, and scheduling for individual accounts. CRM
systems available for specific markets (legal, finance) frequently focus on event management
and relationship tracking as opposed to financial return on investment (ROI).
Social media
CRM often makes use of social media to build up customer relationships. Some CRM
systems integrate social media sites like Twitter, LinkedIn and Face book to track and
communicate with customers sharing their opinions and experiences with a company, products
and services. Enter price management software platforms such as Confirmit , Medallia,
and satmetrix combine internal survey data with trends identified through social media to allow
businesses to make more accurate decisions on which products to supply.
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Systems for non-profit and also membership-based organizations help track constituents,
fund-raising, Sponsors demographics, membership levels, membership directories, volunteering
and communication with individuals.
Features of CCRM
Customer-centric relationship management is used in marketing, customer service and
sales, including:
tailored marketing
retaining customers
subscription billing
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rewards
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Chapter-4
SWOT ANALYSIS & INTERPRETATION
SWOT ANALYSIS
STRENGTHS
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WEAKNESSES
Students with high designation were offered high roles in Aditya Birla groups.
Students with educational qualifications SSC,Intermediate could get employment
opportunities in stores as CSAs
Can improve their own products quality so that they attract the customers to use their
companys products
THREATS
From competitors like Wal-Mart, Spencers, Reliance,Big Bazar, etc.
The size of the stores is less when compared to the stores of other companies
If Hypermarkets come to small towns, then they should meet competitors by
improving product quality, display etc.
Should meet with the range of Reliance fresh F&V.
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ANALYSIS OF QUESTIONNAIRE
A survey was done to know the most commonly visited retail outlet for groceries, order of
preference of brand, basket size and also to find out the perception of people about more and analysis
of more with its competitors.This was done with the help of a questionnaire.
The results of the study were as follows:
Q1) Which of the Retail Stores do you visit generally?
RESULT People mostly visit more and spencers, whereas Big Bazaar is the least visited store
No of Respondents
Percentage
More
80
61%
Spencers
30
23%
Big Bazaar
20
16%
Total
130
100%
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No of Respondents
16%
More
Spencer's
23%
61%
Big Bazaar
Q2) What influence your decision in selecting a Retail Outlet for purchasing?
RESULT This question aimed at finding out the reasons that make people visit a store. The main
reasons a customer visited a retail store were the location of the store and the range and variety of
product available at the store.
No of
S.NO
Reasons
Promotional Activities
4%
Price Range
15
19%
Location
16
20%
Range of Products
16
20%
Services
14
18%
Brand Name
15
19%
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Percentage
Total
80
100%
No of Respondents
Promotional Activities
20%
Price Range
4%
Range of Products
19%
Brand Name
Services
18%
20%
Location
19%
Respondents have selected more than one reason, which influences their decision to select a retail
store.
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Sales
SPENCERS; 35%
Q4) Rank the following Retail Stores on a 1 to 7 scale (1 for most preferred brand and 7 for least
preferred brand)
RESULT The respondents required to rate the Retail Brands on various parameters. The result was that
more and Big bazaar scored the most local vendors was rated the least on almost all the parameters
Parameters
Brand name
More
Chaitanya Retail
More
Reliance fresh
Range of Products
Big Bazar
Reliance fresh
Quality of Products
More
Local Vendors
Price Range
Spencers
Local Vendors
More
Big Bazar
Promotional Activities
Big Bazar
Reliance fresh
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More
Local Vendors
* The result of each parameter is based on the majority of response given by the respondents.
22%
29%
Once a month
Once a week
49%
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Q6) How much do you spend, per month, in purchasing from the store?
RESULT 29 respondents spend less than Rs.500 per month on purchasing and the no. of people
who spent between Rs.501-1,000 is 53. Whereas 11 and 7 people spend Rs1, 001-2,500 and more than
Rs.2500 per month, respectively.
7%
11%
< Rs.500
29%
Rs.501-1000
Rs.1001-2500
> Rs.2500
53%
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S.NO
No of
Percentage
Respondents
21
26%
Grocery Items
10
13%
18
22%
25
31%
Electronic Items
4%
Other Products
4%
80
100%
Total
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No; 24%
Yes; 76%
No of Respondents
4%
26%
13%
Q8) Does advertisement play an important role in selection of a particular Retail outlet?
RESULT Almost two-third of the respondents agreed with the fact that advertisements do play a
vital role in selecting a particular retail outlet.Rest one-third of the respondent said that they are not
persuaded by the advertisements.
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No; 10%
Yes; 90%
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Parameter
Result
Good
Store Ambience
Offers and Schemes
Average
Good
Good
Average
Parking Facility
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Credit Facility
Not available
Excellent
Brand Name
Good
Home Delivery
Yes
Loyalty Points
Yes
Checkout Experience
Average
* The result of each parameter is based on majority of the response given by the respondents.
GENERAL FEEDBACK:
Parameter
No. Of Respondents
Excellent
Good
43
Average
13
Satisfied
34
Poor; 2% Excellent; 8%
Satisfied; 35%
Good; 44%
Average ; 13%
Poor
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Total
100
Chapter-5
FINDINGS, SUGGESTIONS,
CONCLUSIONS
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FINDINGS
There is complete English communication on the POP and banners in store and the
60% of the customers dont understand the language as Toordal.
SUGGESTIONS
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To reach targets in time, the stock is sold to small shops(retail) like products in
offers(like beverages etc.) from stores
The cashier has to explain the offers to customer and need to push the sales.
CONCLUSIONS
more is one of the leading organized retail sector in India of Aditya Birla group and is
gaining a substantial compitative advantage over its compitators because of its effective services
like on time home deliveries, exchanges, clubmore cards, sudexo coupns, festive offers, seasonal
offers, effective shrinkage control, efficient staff training, staff welfare activities, reaches targets
in time, regular staff briefings by store manager, store ambience, regular grading of F & V, daily
updation of prices(bizerba updation), maintaining good customer relationship between store staff
and customers, collecting feedback from the customers and catchement area, provides better
quality of goods with reasonable prices, customer loyality, maintaining record of daily in
operations of store, placing the products based on target market preference.
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QUESTIONNAIRE
Name: __________________________________________________
Gender: __________ Age: ____________ Contact No: ____________
(1) Which of the Retail Stores do you visit generally? (Select one or more options)
(____) more
(____) Spencers
(____) Reliancefresh
(2) What influence your decision in selecting a Retail Outlet for purchasing?
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(____) Services
(____) Location
(3) Order of preference of brands (1 for the most preferred brand and 7 for the least preferred brand)
a) more.
_____
b) Spencers
_____
c) Reliancefresh
_____
d) Karachiwala
_____
e) Chaitanya Retail
_____
f) Local Vendors
_____
Once a month
Once a week
< Rs.1000
Rs. 1000 3000
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(7) Does advertisement play an important role in selection of a particular Retail outlet?
Yes
No
(8) Do you have any other suggestions about how would you like a Retail Store to be?
__________________________________________________________________________________
__________________________________________________________
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__________________________________________________________________________________
__________________________________________________________
(11) Why you dont want to shop from more.?
__________________________________________________________________________________
__________________________________________________________
(12) Rate your nearest more store on the following parameters (Please tick the option based on your
experience)
Parameters
Dont Know
Poor
Store
Ambience
Offers &
Schemes
Range &
Variety of products
Product Quality/Freshness
of the Products
Price of
the Products
Parking
Facility
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Average
Good
Excellent
Credit
Facility
Near to home/
Easy to reach
Brand
Name
Home
Delivery
Return or
Exchange Policy
Loyalty
Points
Checkout
Experience
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BIBILOGRAPHY
www.google.com
www.morestore.com
www.storeoperations.com
www.wikipedia.com
References
Retail Store Operations by SRIRAM B. IYER
Marketing Management by PHILIP KOTLER
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